The Central Bank of Paraguay (BCP) has partially repaid deposits of more than 1.7 million customers of Ueno Bank, which was placed under intervention on 3 November after solvency problems. As of Monday, about $335 million had been repaid out of roughly $2.8 billion in deposits, and most of the money remains missing.
Repayments so far
Ueno Bank’s total deposits stood at $2.8 billion, according to the authorities. Repayments as of Monday covered $335 million of that sum.
Private-sector depositors account for 71 percent of the deposits. Early payment of up to $19,000 was authorised under an emergency law.
Guarantee fund and pensions
José Maciel, head of the BCP’s Deposit Guarantee Fund, said the guarantee fund’s coverage is about $37,000 per depositor per institution. He said the coverage ratio of total Ueno deposits is 27 percent, and that the fund expects to cover 4.6 trillion guaraníes, roughly $740 million.
Maciel said the remainder will have to wait for the bank’s resolution process. Pedro Alliana, president of Paraguay, said recovery of pension resources of public-sector contributors and retirees would be a priority. The Instituto de Previdência Social has committed $516 million at Ueno Bank.
Related: Ueno Bank collapse in Paraguay echoes Brazil's Banco Master case · Paraguay starts deposit payouts for Ueno Bank clients
Source: Central Bank of Paraguay (BCP)
